Zedus furnitures issued a 10 year P1,910,000 FV, 6% bonds at par. Each of the P1,000 bond convertible in to 15 number of common shares. Net income-P612,220. Tax=20%. It had 98,000 shares of common outstanding throughout the year and none of bonds were converted in the year. Calculate diluted EPS Also assume the same as above except P960,000 of 6% convertible preferred stock was issued instead of the bonds. Each P100 preferred share is convertible in to 5 shares of common stock. Find diluted EPS.

Zedus furnitures issued a 10 year P1,910,000 FV, 6% bonds at par. Each of the P1,000 bond convertible in to 15 number of common shares. Net income-P612,220. Tax=20%. It had 98,000 shares of common outstanding throughout the year and none of bonds were converted in the year. Calculate diluted EPS Also assume the same as above except P960,000 of 6% convertible preferred stock was issued instead of the bonds. Each P100 preferred share is convertible in to 5 shares of common stock. Find diluted EPS.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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